Tamboran Resources secures key LOIs for expanded East Coast gas supply
Proactive Investors
Published Aug 28, 2023 11:20
Updated Aug 28, 2023 12:00
Tamboran Resources secures key LOIs for expanded East Coast gas supply
Tamboran Resources Ltd (ASX:TBN, OTC:TBNRF) has signed non-binding letters of intent (LOIs) with leading energy giants, Alinta Energy and ENGIE, potentially expanding its low-reservoir CO₂ gas supply from Beetaloo Basin to 600-875 terajoules (TJ) daily or 220-320 petajoules (PJ) annually for a duration of 10-15 years.
The LOIs are conditional upon the parties agreeing on non-binding term sheets and working toward executing binding gas sales agreements (GSAs), including purchase price, transport arrangements and other key commercial terms.
Should these terms evolve into binding GSAs, Tamboran has signalled its intention to advance the proposed pipeline project with APA Group, bridging the Beetaloo Basin in the Northern Territory of Australia with the East Coast gas transmission network.
Moving forward, the company plans to kick off the first gas transfer via the proposed Beetaloo to East Coast pipeline by 2028, subject to commercial flow rates from its Beetaloo Basin assets and standard approvals.
Long-term energy security
Tamboran managing director and CEO Joel Riddle said: “We continue to experience significant interest in purchasing low-reservoir CO₂ gas from our Beetaloo Basin assets delivered into the East Coast over the long term.
“We believe this demonstrates the longevity of demand for gas on the East Coast.
“The total volume under interest from the six parties we have received LOIs from to date reflects ~40-55% of 2023 East Coast gas demand (excluding LNG) as forecast by the Australian Energy Market Operator (AEMO).
“We look forward to working closely with the buyers to support their ongoing gas needs and provide energy security to Australians in the Northern Territory and East Coast over the long term.”
Tamboran’s Beetaloo Basin asset location map
About Tamboran
Tamboran Resources is the largest acreage holder and operator with about 1.9 million net prospective net acres in the Beetaloo Sub-basin within the Greater McArthur Basin in the Northern Territory.
The company is focused on playing a constructive role in the global energy transition towards a lower carbon future, by developing the significant low CO₂ gas resource within the basin.
Tamboran will focus on the development of the proposed EP 98/117 Pilot Development, targeting first production by the end of 2025, and the proposed Northern Territory LNG (NTLNG) development at Middle Arm in Darwin, targeting first production by the end of 2030.
Read more on Proactive Investors AU
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